Solar Energy: Feed-in tariffs


By installing a new photovoltaic system you can take advantage of the Government’s Clean Energy Cash Back scheme. Running along the same lines as the feed-in tariffs in place in other countries, the result will be cheaper renewable energy.

The Feed-in tariff can be summed up as follows:

For a solar PV system that you have installed, for every unit of electricity you generate you will be paid (per kWh) whether you use it or not.

If you use the electricity that you generate you will also save the money that you would otherwise have spent buying it.

If you don't use it you will also receive additional payment from your electricity company who will buy it off you.

The payment is guaranteed for 25 years.

For a system to benefit from the Feed-in Tariff, it must be installed by a company that is registered under the Microgeneration Certification Scheme


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A fixed premium rate for renewable energy

Under the proposed system, small-scale energy producers will be offered a fixed, premium rate for renewable energy fed-in to the grid (previously, although some UK microgenerators received a payment for selling their electricity, this was not guaranteed). 

This energy is bought by the utility companies which are obliged under the legislation to buy the units of energy over a set number of years.  1.5 million households could benefit from this increased support for renewables. 

There will also be additional payments for exporting to the grid

An added bonus is that there are further payments for exporting surplus energy to the grid.

It’s an important component of the Low Carbon Transition Plan, which aims to turn the UK into a low-carbon economy.  At its core are legally-binding, five-year carbon budgets within which government departments will have to stay, much like financial budgets.   The target is a 34% reduction in greenhouse gas emissions by 2020.  Although cars, businesses and farming will be affected by measure, half the reduction will come from clean energy generation.

A legally-binding EU target already obliges the UK Government to generate 15% of its total energy needs from renewable sources by 2020, a figure which, if realised, will represent a ten-fold increase in renewable energy generation.

The Cash Back scheme provides a real incentive to invest in solar energy.   If you are considering a solar PV system, please phone us on 01797 25 35 63 to discuss your plans.

For a guide to the rates, please see our Feed-in Tariff rates page.

Although solar thermal microgeneration is not included in the FIT, the consultation period for the Renewable Heat Incentive (RHI) has begun.  Expected to kick off in Summer 2013, this scheme will guarantee payment to homeowners who install solar hot water.  For more information on this, see our Renewable Heat Incentive page.

Decc (Department for Energy and Climate Change) Feed in Tariff information

Feed in Tariffs information site

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